QUESTION 6 Cypress Corporation just paid a $5 per share dividend. The company is expected to grow at a constant rate of 10 percent per year. The required rate of return on the stock is 15 percent. What is the value per share of the company's stock? (calculate PO) (4 points) QUESTION 7 The Water Works Company's cost of equity is 20 percent. It's before tax cost of debt is 10 percent, and its average tax rate is 40 percent. The stock sells at book value. Using the following balance sheet, calculate the company's after-tax weighted average cost of capital points) Assets Liabilities and Equity Cash $ 5.000 Accounts Payable $3.000 Acct Rec 8,000 Inventories 10.000 Long-term debt 18,000 Plant&Equip 2.000 Equity 2.000 Total Assets $30,000 Total Liab&Equity $30.000 QUESTION 8 1. Project evaluation A project being considered has the following projected cash flows: Project A cash flow ($800,000) 250,000 250,000 250,000 250,000 250,000 The required rate of return (cost of capital) on this project is 10 percent For each of the following methods, stipulate if the project would be chosen. (You must show your work to receive credit.) A Payback period Corporate policy - 2.5 years (6 points) Accept or Reject